PCL Reclaim Ltd
Suite 4a 665 Business Centre
Todd Hall Road
Tel: 01706 724 216
What is a SSAS pension?
SSAS pension stands for 'small self administered scheme' and is a type of defined contribution pension that an employer can self-
SSAS pension explained
SSAS pensions are a type of workplace pension which can be independently managed by the company that sets it up. It doesn’t require any interaction with financial institutions or insurance companies and is usually set up by directors and senior staff to provide increased retirement benefits and greater investment flexibility. Members of an SSAS pension can choose how their pension savings are invested and can use their SSAS pension to invest in the company.
SSAS pensions are particularly common in small or family-
HMRC SSAS rules allow members to invest in a range of assets including commercial property. The scheme can also offer commercial loans and could therefore provide a loan to the company in order to purchase an asset, such as a new building. Another difference of this defined contribution scheme is that it can borrow money, via a mortgage for example, as long as it’s for investment purposes.
Cashing in an SSAS pension
If you’re the member of an SSAS pension you can start drawing benefits from the age of 55 (57 from 2028). Like all personal or workplace pensions you can choose to take the first 25% of your pot as a tax-
The amount of benefits you’re entitled to will depend on how much you and your employer have contributed to the scheme, how long each contribution has been invested and the performance of the investments.
After the tax-
The tax benefit of SSAS pensions
Any contributions members make to an SSAS pension are eligible for tax relief. Basic rate taxpayers get a 25% tax top up, meaning HMRC adds £25 for every £100 you pay into your pension.
If you pay a higher rate of tax, you’ll be able to reclaim additional tax relief through your tax return. Contributions paid into the scheme by the employer also qualify for tax relief which can help reduce its total tax liability.